Argentina Readies To Join LNG Exporters Club With Maiden Cargo

(Reuters, 20.May.2019) — Argentina is about to export its first liquefied natural gas (LNG) cargo from a new floating facility, marking a milestone for its energy sector boosted by rising gas production from its large Vaca Muerta shale region.

State energy
firm YPF is believed to be offering a partial LNG cargo from FLNG Tango, the
liquefaction vessel off Bahia Blanco, two LNG trading sources said on Monday.
One source said the cargo was on a free-on-board (FOB) basis for prompt
loading.

Argentina
will become the 21st country to export LNG. It has long bought LNG, alongside
buying pipeline gas from neighbouring countries and producing its own, to boost
supplies especially during winter.

But rising
output from Vaca Muerta, one of the world’s largest reserves of shale oil and
gas, helped it reduce LNG imports by over 20 percent last year to 2.6 million
tonnes, according to industry group GIIGNL.

The new
exports do not mean Argentina will cease importing LNG; energy firm Integracion
Energetica Argentina (IEASA), formerly known as ENARSA, has issued buy tenders
for LNG cargoes for delivery throughout May to September.

The country
needs billions of dollars in investment into the construction of pipelines,
storage terminals and other energy infrastructure to fully benefit from its
shale resources.

In many
countries with a fast-developing energy industry, bottlenecks and price moves
can mean that some regions are left energy poor while others export. Major LNG
exporter Australia, for example, is seeking to import LNG soon. (Reporting by
Sabina Zawadzki and Ekaterina Kravtsova; Editing by Toby Chopra and Mark
Potter)